A cash advance is something that allows a consumer to borrow cash from payday lender. Consumers without a credit card may get a cash advance by talking to a payday loan company.

Payday loan cash advances usually do not charge interest. They charge the borrower a flat fee. Most banks charge their cardholders a flat minimum fee or a percentage of the amount of money that the cardholder withdraws. Different banks may charge slightly different rates for this service, but consumers should anticipate paying between three and five percent or ten dollars. When getting a payday loan, consumers will be charged a flat fee that ranges from $25 to $100. This amount is sometimes capped by state laws.

In addition, banks may charge slightly more if a teller has to process the transaction over the counter. However, the bank cannot charge this extra fee if they originally issued the card. Payday lenders do not charge any additional fees.

Credit card holders should also keep in mind the interest rates that a credit card cash advance incurs. These interest rates range from 20 to 30 percent. On a payday loan, however, there is no extra interest rate. Consumers know exactly how much they owe as soon as they take out the loan. Cash advances can be an easy way to access cash quickly.